China Growth Slumps to 20-Year Low
Slowdown sends ripples through world economy
By Rob Quinn, Newser Staff
Posted Jul 15, 2013 3:06 AM CDT
Containers are piled at a port in Qingdao in eastern China's Shandong province. China says imports and exports both fell abruptly in June.    (AP Photo)

(Newser) – After two decades of growing at an astonishing rate, China's economic growth has cooled off enough to cause problems in plenty of other economies. Figures released today show the economy grew 7.5% in the first quarter of this year, a rate many countries can only dream of but still the lowest since 1990, the BBC reports. Officials have set a target of 7.5% growth for the year, but analysts doubt China can hit even that modest target without stimulus measures.

China's growth rate has been slipping since its 2007 peak, and its government faces the tricky task of reshaping the economy to make it reliant on consumer spending instead of heavy industry, the Wall Street Journal finds. The shift has hit some countries hard, including Indonesia and Australia, where unemployment is rising and Prime Minister Kevin Rudd recently declared that "the China resources boom is over." But the picture is brighter for countries—including the US—whose exports go mainly to Chinese consumers.

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Showing 3 of 19 comments
Bundy714
Jul 15, 2013 12:54 PM CDT
I guess it's all in how you want to look at it. This article paints it as bad news, while the financial news today said stocks were up on news of China's 7.5% growth.
HonkUSA
Jul 15, 2013 10:49 AM CDT
Did Walmart cancel an order ?.
Falcon269
Jul 15, 2013 9:40 AM CDT
This is a complex and confusing measurement. China has been inflating its economic activity for years by building infrastructure where none is needed: http://www.youtube.com/watch?v=rPILhiTJv7E At the same time they have not been building infrastructure where it has been needed: http://www.forbes.com/sites/williampentland/2011/05/17/china-braces-for-blackouts/ China (PRC) has capitalized on cheap labor as its primary advantage while developing a reputation for uncertain business ethics. Entrepreneurs raised in the PRC feel very free to make unauthorized substitutions and to make samples that are high quality and production runs that do not match the sample. This raises the cost of doing business out of China and eventually leads to pulling Chinese production for more reliable manufacturers - Taiwan, The Philippines, Korea and lately Vietnam: http://www.ubis-geneva.ch/vietnam-a-booming-economy/ Taiwan, has developed a reputation for quality products that focuses on delivering to the customer requirements and Taiwanese managers have access to PRC factories. The Asian countries that move to embrace Deming and Juran quality philosophies will seize much of China's market share. As for this being good news, I think not. China is invested in maintaining adequate, if only barely, relations with the US as a primary driver of their economy. If the we greatly reduce reliance for manufacturing the Chinese military leaders will gain a more influential position and things will turn ugly - as in invading Taiwan to start with.